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Incumbent retail organisations need to develop new capabilities to adapt with the increasingly competitive retail landscape. Despite the growing relevance of innovation in retail practice, the strategic management of innovation in retailing is still vastly under-researched. This explorative study thus aims to investigate how incumbent retail firms can organise for innovation from an organisational ambidexterity perspective.

A single-case study of an established Swedish retail firm was conducted from December 2016 to July 2018 and followed up in June 2021. The authors followed the process of implementation of organisational changes aimed to increase innovation in the company, particularly the introduction of a digital marketing initiative and a corporate innovation hub. Data collection was based on nine semi-structured interviews and participant observations and unstructured interviews from 13 meetings and workshops. An abductive approach to data analysis was followed, iteratively comparing theoretical concepts and empirical data using open, axial and selective coding to distil findings into aggregated themes.

Given the inherently limited formalisation of innovation processes in most retail organisations, structural ambidexterity appears to be necessary when the aim is radical, strategic retail innovation. Structural mechanisms are able to safeguard the space and resources to focus on long-term research and projects with higher risk and uncertainty; however, integration of innovation activities to the mainstream organisation is critical. Pursuing contextual ambidexterity, wherein instead of structural solutions, employees are empowered to divide employees' time between innovation-related and efficiency-related tasks, is more likely related to retail innovations that are incremental and operational.

The paper contributes to the emerging topic of strategic management of innovation in retailing, by explicating how incumbent retailers can organise for innovation depending on the type of innovation that is aimed for, using organisational ambidexterity as a novel perspective.

The purpose of this paper is to engage in the research gap regarding the missing link between retail innovation and branding by providing a brand-driven process to systematically develop retail format innovation projects. The so-called “Brand-driven Retail Format Innovation” (BRFI) approach provides a structured three-phase model that serves as a conceptual guide for the development of any type of retail format.

Longitudinal collaborative action research over a time span of 20 years plus extended case study research to develop the current BRFI approach.

BRFI is a circular three-phase framework, which integrates branding, and retail format innovation. It starts with the definition of the intended retail brand identity, which in phase 2 becomes translated into concrete touchpoint experiences along the main constituents of a retail format, finally during phase 3 materializing into the new retail format. A case study of a major food retailer is prototypically used to illustrate the application of the designed approach and to report achieved results.

Brand-driven retail format development based on translating socio-cultural meanings into touchpoint experiences to materialize format constituents is opening up new research avenues to govern retail format development. At present the approach is based on retail and services case studies in Western Austria.

The three-phase model represents a practical tool for retail managers, who want to renew and to develop their retail format in a structured way. The approach is applicable to all retail industries from small- to large-scale organizations as well as online and offline environments.

This is the first study engaging in the missing link regarding retail innovation and branding by providing a brand-driven process to systematically develop retail format innovation projects. BRFI locks into anthropological research findings where cultural meanings are considered as the main source for the construction of brand identities whereby the new retail format is transformed around brand-derived touchpoint experiences.

The purposes of this paper are to develop a more complete understanding both of the characteristics of innovation within retail firms and of the ways in which retailers perceive innovation and measure its effectiveness. Whilst there is a broad consensus that innovation is an application of new ideas that stimulate economic performance, the term attracts a wide range of interpretations that are largely contingent upon the context within which innovation occurs.

These aims are achieved through analysis at the level of the firm by means of qualitative research in the form of a series of in-depth interviews with more than 50 senior retail executives and other industry experts internationally.

The research results show that whilst retailers clearly recognise the important role of innovation for successful business performance, innovation in retailing nevertheless possesses a range of sector-specific meanings and measurement approaches that are distinct from more generic understandings of the phenomenon.

Whilst the paper summarises relevant literatures and presents the results of the primary research it also sets out a number of novel conceptual frameworks, which seek better to categorise the perceived meanings of retail innovation and the measurement tools most frequently employed to determine innovation effectiveness in retail firms. The proposed frameworks facilitate future scholarly exploration but are also of use to practitioners as a means of better understanding the nature of innovation within their businesses.

Notwithstanding the importance innovation scholars have accredited to design-driven innovation (DDI), no attempts have been made so far to systematically study whether and how this innovation strategy can be used in the retail context in order to gain and nurture competitive advantage. The purpose of this paper is to make a first step towards closing this gap, and therefore understand whether and how companies involved in retail service can create competitive advantage by the adoption of a strategy based on innovation of meanings.

Due to the complex ecosystem of variables that inevitably influence the problem, the case study approach represents the best option to grasp the different aspects highlighted by the research objectives. The analysis undertook a thorough and systematic comparison with the use of an ad hoc “paired comparison method”, in which common systemic characteristics have been intended as a controlled variable in order to minimise the variance and quantity of factors that can have an impact on the selected case studies; intersystemic differences have been understood as explanatory variables to decree the contribution in terms of novelty in relation to the current paradigm.

The paper provides empirical insights about how radical innovation in meanings can be a very important lever on which retail firms can act to gain and nurture their competitive advantage.

Of course the study has several limitations, which represent however opportunities for future research. The authors say that the findings, given the exploratory nature of the study, cannot be generalised to any population of firms or markets, rather they should be used as a basis to develop theoretical understanding of a complex phenomenon and draw research propositions and hypotheses to be tested in subsequent deductive empirical research.

This paper highlights the importance to think, beyond shopping experience, at the role of new meanings when designing service innovation in retail firms. Although the findings do not have statistical relevance, given the exploratory nature of the study, they suggest that DDI can be a viable option for retail firm managers to improve their firms’ competitiveness.

The study presented in this paper has merit to broaden the generalisability of the DDI model to other industries, different from those where it was initially studied and applied. This is an important step toward conceptualising DDI as a novel management paradigm.

Despite the importance of innovation in business performance, investigation into innovation in services is scanty and lacking consensus. In retailing, it is a topic that has been awakening considerable academic and business interest in recent years. In this study context, this work aims to analyse innovation in retail experiences from two aspects – marketing innovation and technological innovation – to understand the role it exercises in satisfaction and subsequent recommendation.

The authors’ objective is to investigate the direct and indirect influence of marketing and technological innovation on satisfaction and word-of-mouth (WOM) through three core constructs: store image, consumer value and store brand equity. SEM methodology is applied on a sample of 820 retail customers of grocery, clothing, furniture an electronics store.

The results show that technological innovation is more important than marketing innovation in shaping image, value and satisfaction. At the same time, store image is the variable that most influences customer satisfaction and that satisfaction is a very significant antecedent of WOM behaviour. Practical implications for retail managers and further research are presented.

The main value of this work has been to go deeper into the study of retail innovation, both in marketing and technologies, and its direct and indirect effects on satisfaction and subsequent recommendation through store image, consumer value and store brand equity. It is a new line of study, which is still fragmented and with little empirical evidence.

Research suggests that innovation plays a key role in creating a competitive edge and business survival in highly competitive industries like retail. Despite the importance of innovation in retail establishments, very limited efforts have been made so far to study how innovation influences consumer behavior in retail establishments. This paper aims to identify the impact of relationship benefits (i.e. confidence, social and special treatment benefits) on consumer’s loyalty with the retail store and examine the moderating effect of retailer innovation in these relationships.

To conduct this study, a sample comprised of 400 consumers of four retail sectors (i.e. household, electronics, textile and food) was chosen. The data were analyzed through partial least squares structural equation modeling (PLS-SEM) technique.

The findings of this research suggest a significant positive influence of confidence and special treatment benefits on consumer loyalty and that retail innovation moderates the link between relationship benefits and consumer loyalty.

This research contributes to the existing literature in the domain of retail customer loyalty by empirically testing the under-studied phenomenon of retail innovation with the help of contingency theory.

The innovation of meaning paradigm is a strategy to radically innovate product and service meanings. While researchers have focussed on the role of product and retail space meanings as interlinked in the pursuit of innovation, no investigation has been directed towards understanding when the two meanings differ. This research explores how companies can manage two different meanings offered through their retail services and the products sold.

Due to the highly intangible and subjective nature of meaning, as well as the exploratory aim of the research, a case study approach has been adopted. In particular, the research compares two case studies of similar companies in the beauty industry. Data were triangulated across three different sources: a panel of experts, ethnographic research in the two companies' stores and extensive academic and practitioner publications.

Findings suggest that innovating the service meaning can be a viable strategy to differentiate a retail offering the product meaning which is no longer perceived as different with respect to competitors.

The study applies the innovation of meaning concept to retail services, distinguishing the meaning given to the store from that given to products, thereby offering managers a strategy to innovate a suffering retail format.

Neither retail formats nor business models are static entities. Retailers develop new formats, manage existing formats and discard formats over time, as a consequence of many contributory factors in the retail environment. The paper provides a brief summary of our existing understanding of the retail innovation process and of the longer term retail format lifecycle, before placing this alongside recent UK research into the contemporary practice of format innovation. It explores four features of recent format change in the UK that provide the basis for distinctive business models.

Analysis is derived from interviews with retail practitioners and supported by quantitative evidence from government statistical sources.

The paper concludes that whilst existing models of retail format change can risk oversimplifying and formalising what are often experimental, incremental and often accidental processes, they can complement our understanding of longer term trends in UK retail formats.

The evolution of retail formats, together with the retail business models of which they are an expression, has been a continuing source of interest amongst stakeholders ranging from consumers, developers and investors. Findings demonstrate that innovation is seen as providing an important source of diversity and renewal for urban and suburban spaces.

The paper is of interest to practitioners and students of retail management.

Innovation and sustainability are two key factors for retailers seeking a competitive advantage. However, the way in which the joint effect of both of these variables impacts consumer satisfaction is still unknown. To address this gap, based on the concept of sustainability-oriented service innovation (SOSI), the authors introduce a new construct named sustainability-oriented commerce innovation (SOCI) in the context of the retail sector.

The relationships between the variables defined in this research were examined using a structural equations model for 510 customers of grocery retail establishments.

The authors find support for a direct positive impact of SOCI on customer satisfaction and an indirect impact through store equity. These chained effects are modified according to the client participation in the development of sustainable and innovative initiatives.

This research analyses the joint effect of innovation and sustainability in the retail context by introducing a new concept – SOCI – and a scale for its measurement whose psychometric properties are validated.

This work aims to attempt an in-depth study of the link between relationship benefits and store loyalty, examining the moderating role of the retailer’s degree of innovation in these relations.

An equations model has been contrasted based on 820 valid individual structured questionnaires administered to consumers of 13 trade names in four retail distribution sectors (food, textile, electronics and household goods).

The results provide evidence of the positive influence of relationship benefits on store loyalty and in particular the benefits stemming from trust. The links between social and special treatment benefits in relation to loyalty are, however, significantly stronger in the less innovative establishments.

This paper provides evidence of the moderating role of innovation on the relationship between social benefits and special treatment benefits and loyalty.

Technology may be used as a differentiation tool. The retailer should concentrate its investments on information and communications technology solutions that contribute to enhance the customer experience at the point of sale without neglecting the social dimension to increase the benefits of trust and ultimately, customer loyalty.

The paper provides an in-depth examination of the retail innovation variable which is scarcely analysed in the literature, offering support for the idea that innovation at the point of sale plays a moderating role in the links between relational benefits and customer loyalty.